- 31 Jul 2013
TAQA First Half 2013 Results
31 July 2013, Abu Dhabi, United Arab Emirates – TAQA, the international energy company from Abu Dhabi, today reported its operational and financial results for the first half of 2013.All amounts in AED million unless otherwise stated(1) Excludes fuel revenue and construction revenues. Also includes certain other operating revenue relevant to the Power & Water business.
(2) Includes gas storage plus certain other operating revenue relevant to the Oil & Gas business.
(3) Excluding construction costsSummaryThe first half of 2013 was characterised by good progress against TAQA’s long term growth projects, while a number of short-term operational issues impacted profitability.Lower production in the UK North Sea and unplanned outages at two power plants were the main factors behind a 4% decline in revenue to 11.3 billion dirhams. A net loss was recorded after minority interests of 66 million dirhams.A series of one-off incidents affected both the oil & gas and power & water divisions in the first half. These were resolved before the end of the period and the outlook for the rest of the year is positive. The comparison with first half results for last year is distorted by disposals of assets in North America and the sale of shares in Tesla Motors in 2012.TAQA has emerged from the first six months of its financial year with strong operating cash flow of 4.3 billion dirhams and a liquidity position of 19.5 billion dirhams that provides us with ample capacity to cover upcoming maturities and finance our growth plans.In the UK North Sea, limited production has already resumed at the Cormorant Alpha platform and full production is expected in the third quarter, after an internal leak closed it in January. In Morocco, TAQA took advantage of an unexpected outage at its largest international power plant at Jorf Lasfar to bring forward maintenance that was previously scheduled for 2014.Carl Sheldon, Chief Executive Officer of TAQA, said: “We have worked hard to overcome a number of operational challenges that affected our performance in the first half of the year, while making great progress against project milestones. We are focused on operational excellence and look forward to ending the year with a positive financial outcome.”Stephen Kersley, Chief Financial Officer, said: “The second quarter is anticipated to be the low point of the year, with a positive outcome forecast for the 12-month period. We have over AED 19.5 billion of available liquidity, more than sufficient to cover upcoming maturities and finance our growth plans.”TAQA’s business in North America, which accounts for approximately one quarter of the asset base, is seeing a turnaround with natural gas prices rebounding by 54% year-on-year, and production targets exceeded in the first half.In the Kurdistan region of Iraq, TAQA and its partners submitted a field development plan for the Atrush block, where first production is expected in 2015. TAQA assumed operations of this concession in 2013 and is currently testing the third well on the block.The major expansion project at the Jorf Lasfar power plant in Morocco is now 87% complete and scheduled for commissioning in the first half of 2014. Gas Storage Bergermeer, the strategic gas storage hub in the Netherlands, is due to begin phase one operations in mid-2014 with a full start-up in 2015. The Ghana power expansion is 44% complete and on track for an early-2015 start-up.Click here to view the full release in PDF format.